Mississippi is currently home to a little more than 197,000 small businesses. And, each year, more people learn how to get an LLC in Mississippi and open their own companies in the area.
So, are you ready to learn how to create an LLC in Mississippi? Read on to learn how to start an LLC in Mississippi and download a Mississippi LLC operating agreement template.
Is an LLC Operating Agreement Required in Mississippi?
An LLC operating agreement is not required in Mississippi. You can actually start an LLC without creating any kind of operating agreement.
However, failing to create a Mississippi operating agreement could leave your business at risk if you go to court for anything. You could wind up personally liable if you don’t have your business procedures and rules properly outlined.
Mississippi Operating Agreement Laws
Part of knowing how to form an LLC in Mississippi is knowing the laws surrounding operating agreements. You can find all the Mississippi LLC operating agreement laws in Miss. Code Ann. § 79-29-123, but there are a few things you should be aware of.
For one thing, all Mississippi LLCs have to have the words ‘limited liability company’ or LLC in the name. Secondly, if they create an operating agreement, the LLCs have to store a copy in their business records.
Mississippi LLCs should also outline their business operations and the duties and roles of all managers in their operating agreement. These roles and operations have to fall under Mississippi state law, as this is what governs LLCs in the state.
How Much Does it Cost to Form an LLC in Mississippi?
The filing fee for registering your certificate of formation in Mississippi is $50. That’s quite a bit lower than other states, which can be upwards of $100. However, the foreign filing fee is $250.
If you want to reserve your LLC name, you can pay an extra $25 to do so.
How to Form an LLC in Mississippi?
With all the details out of the way, it’s time to talk about how to register an LLC in Mississippi. Here are the steps you’ll need to take to do so.
Step 1 – Choose a Company Name
The first step to starting your own LLC in Mississippi is to select your company name. Remember, the name has to include the words “limited liability company” or an abbreviation.
Your name has to be unique and cannot belong to any other business. If you want to register your name, you can do so up to 180 days in advance.
Step 2 – Select a Registered Agent
In Mississippi, LLCs have to have a registered agent. These agents take care of service of process and handle legal documents on behalf of the limited liability company.
Your registered agent can be a current Mississippi resident. Or, it can be a business entity that’s authorized to do business in the state of Mississippi.
Step 3 – File a Certificate of Formation
Next, you need to file a certificate of formation. To do so, your certificate of formation (also known as articles of incorporation) gets sent to the Mississippi Secretary of State and includes key information, such as:
- The name of the LLC
- The LLC’s email address
- The NAICS code of your LLC
- A manager, organizer, or member’s signature
You can either mail your forms to the Secretary of State or file them online. Either way, it will usually take a few days for your business to get set up. Remember, when you file this certificate you’ll also need to pay the filing fee.
Step 4 – Write an Operating Agreement
The fourth step in the process isn’t legally required in Mississippi. However, it’s still a good idea to do this as it establishes how your business will be run. It can also offer legal protections if you ever have to go to court.
Your operating agreement should lay out a few key pieces of information, including:
- Each member’s percentage of ownership of the business
- The rights and responsibilities of the members
- Voting powers of each member
- How your company will measure losses and profits
- How your company meetings and votes will be organized
- Provisions that allow for members to sell their share of the company.
Step 5 – Get an EIN
The final step of starting up your own LLC in Mississippi is to get an employer identification number, also called an EIN. EINs can be obtained from the IRS website and are completely free to create.
The reason why you need an EIN is that it’s what allows you to hire employees, open a business bank account, and take out business loans. If you are a single-owner LLC, you can simply use your social security number.
Mississippi LLC Operating Agreement Template
Download a Mississippi operating agreement template below:
LLC Operating Agreeement